Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 23, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises LivePerson, Inc. (“LivePerson” or the “Company) (NASDAQ: LPSN) investors that a lawsuit was filed on behalf of investors that purchased LivePerson securities between May 10, 2022 and March 16, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The lawsuit against LivePerson revolves around several key disclosures and financial reports that significantly impacted the company's stock price. The sequence of events is as follows:
February 28, 2023 - Notification of Late Filing: LivePerson filed a Form 12b-25, notifying of a delayed Annual Report (Form 10-K) for the year ended December 31, 2022. The delay was attributed to the need for additional review and testing of revenue recognition related to a discontinued program of WildHealth, a company acquired by LivePerson. This program's Medicare reimbursement was suspended pending government review. This announcement led to a 14.31% drop in LivePerson's share price, from $11.81 to $10.12 per share.
March 6, 2023 - Disclosure on Form 8-K: LivePerson released a report indicating that the review of WildHealth's revenue would likely impact the fourth quarter 2022 revenue, particularly due to the suspension of Medicare reimbursements since November 2022. This news caused the company's shares to fall by approximately 6.8%, from $11.47 to $10.69 per share.
March 15, 2023 - Q4 2022 Financial Results: The company announced its Q4 2022 financial results, revealing a 1% decrease in total revenue compared to the same period last year, amounting to $122.5 million. This was disclosed through a Form 8-K press release.
March 16, 2023 - Filing of the 2022 Annual Report: LivePerson filed its 2022 Annual Report with the SEC, revealing a material weakness in internal controls over financial reporting. This disclosure indicated that the company's disclosure controls and procedures were ineffective as of December 31, 2022. Following this report, LivePerson's shares plummeted by approximately 57.73%, from $9.77 to $4.13 per share.
The lawsuit alleges that throughout the Class Period, LivePerson made false or misleading statements and failed to disclose material information. Specifically, the defendants did not reveal that the company's disclosure controls and procedures contained a material weakness, that it maintained deficient internal controls over financial reporting, that its Q3 2022 financial statements did not disclose the suspension of Medicare reimbursements for WildHealth, and consequently, that LivePerson had overstated its future financial position and prospects.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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